Biking Nerd

So I’ve pretty much transitioned from my urban life (working and living in Denver) to a suburban life in Greenwood Village…hey its for the kids!  One habit that I refuse to give up is riding my cruiser (bike) as much as possible….to work, meetings pretty much everything.  So as I ride my bike through the car-centric burbs I am noticing something.  I’m getting a lot of waves, smiles thumbs up etc. from folks driving in their cars.  I think those drivers are approving of my mode of transportation, but more importantly, I hope they see me and say…”you know what, I think I’m going to ride my bike to work too!”

Fundamental Shiftist

Fundamental Shiftist….hmm?  To go along with the MANY changes that are going in the world (and all of them are not financial), many people are changing their views on life in general and how we individually live them.  We are experiencing fundament shifts in how we earn, save and interact with one another, humans may be going through another evolution of sorts.  Thomas Friedman’s article reflects this point. We must continue to live, but living differently is not an option…it is something we must do!

Great Opinion Piece

I’m kind of going back on my promise to myself not to post any negative articles, comments etc., but this is a damn good OP Ed by Peggy Noonan of the WSJ.

Yes I agree…people do “feel” different than they did just a couple of years ago.

Going Solar with a Power Purchase Agreement

 

So everyone is asking “how do I go solar”…at home and at work. Up until now, solar power has, for the most part, been a pretty big investment. This is where Power Purchase Agreements, or PPA’s come in to play, specifically for commercial users. For those of you who don’t know what a PPA is here is the Wiki.  Solar Power Partners, based out of Mill Valley, CA, is one of the largest players in the market.

So I’ve done some quick math… Colorado commercial users are charged a rate of $0.085/kWh.  Let’s assume post tax credits and rebates, your charged rate will be $0.145/kWh.  Typical with most PPA agreements, there are annual escaltors…the average is about 4.5% per annum.  The average annual electricty rate increase over the past 10 years in Colorado has been about 9.0%.  When the global economy does come back…and the big question is “when”, energy rates will continue to climb exponentially across the world as global consumption of energy and demand will continue its upward ascent as China and India continue on their paths towards First World status.  I’m thinking annual elecricity rate increases will average 10%-15%.

Breakeven happens at year 12…all in after 20 years….you will pay $0.001/kWh by entering into a PPA….negligible!

Endangered Species: The Working Stiff?

 

 

 

 

 

The Working Stiff….(Homo Workus Stiffus!)  Ha!  They are the species that are hilariously depicted on shows such as The Office…or comic strips such as Dilbert.  These are the people that pretty much HATE their jobs.  They show up everyday because they have to.  They have mortgages, credit cards and college tuitions to pay…it is their prison sentence.  

But what happens if there is no work for the Homo Workus  Stiffus?  The concept of stable, safe, salaried employment with health benefits and a company matching 401(k) is becoming very rare these days.  Will Homo Workus Stiffus evolve into…Homo Entrepreneurus?

Giving Up on the Dream of Retirement

“Save your money for retirement.” This is what you are taught by your parents and be the cadre of financial experts on CNBC , the Wall Street Journal and the multitude of financial talking heads and market bulls. So, when you graduate from college and get that first real job, you put away that initial monthly contribution…you feel that you have just started your journey to financial freedom one day.

The concept of retirement was a 20th century luxury.  With 401(k)s and IRAs being destroyed, the greatest Ponzi Scheme of them all, Social Security will be gone in a decade and with pension funds seriously underwater…we will be forced to be door greeters at WalMart and eat cat food until we die unless we force fundamental changes in our lives…in the way we spend, in the way we save and in the way we invest our money.

We need to emphasize investing money in OURSELVES.  I guess the best way to do that is to drive the creation of small businesses, encourage more entrepreneurs.  Yes, entrepreneurial ventures are traditionally very risky…but at least we have more control over our fates…we have no one to blame but ourselves if we fail…and we can bask in the glory at our successes.

Maybe I should have put money money towards that car wash business with my first paycheck!

Just Nationalize Already!

Just nationalize the US banking system already. With reports of the “Good Bank”, “Bad Bank” concept falling apart due to asset pricing issues, instead of beating our heads against the wall to figure it out…just nationalize. It is a much easier solution to this mess.

I know that our banking system is a symbol of our capitalist system…but obviously our form of capitalism has exceeded its useful life…it is time to change…it is time to reform.

Make the banking industry a utility…pay the top execs no more than $400k a year…it will stop the speculation and lessen the global economy’s exposure to cataclysmic events that we are going through right now!

In the past, being a banker was a path to riches…our best and brightest went to the likes of Lehman Brothers, Goldman Sachs and Morgan Stanley. If we change our system now…our best and brightest will now become engineers or eco-prenuers…something that will actually be beneficial and useful to our society as opposed to dreaming up shit to enrich a few and screw everyone else!

Front Page Disaster

If you’ve opened the front page of the WSJ online today you will see…”Breaking News, ConocoPhillips cuts 4% of workforce”, let’s see that equates to roughly 1,600 jobs. Circuit City will be liquidating…that equates to 30,000 jobs. Pfizer…who says pharma is safe?! There goes 2,400 jobs. And finally AMD…1,100 jobs…gone!

Final tally over 35,000 jobs. Let’s do some very rudimentary math here. Let’s make some assumptions…let’s assume that the average income for these 35,000 positions is $40,000…that is $1,400,000,000 of lost income!! I had to run that calculation twice because it was so large! A $1.4 bn impact on our economy in one day’s headlines!

This has happened day after day for the past year and will continue to happen for most, if not all of 2009. Scary!

Doomsday Scenario!!

Could this be another reason to fast track renewables and get of the grid?! You decide. Below is a post from gotoguy.com
We reported on December 17th, 2008 in End of the World 2012 , that something strange was brewing in space. Two reports from NASA demonstrated marked changes in the Earth’s magnetic field as well as the boundary between the upper atmosphere and deeper space.

Now Fox News reports Powerful Solar Storm Could Shut Down the US for Months. Citing a report from NASA :

“Damage to power grids and other communications systems could be catastrophic, the scientists conclude, with effects leading to a potential loss of governmental control of the situation.

When the sun is in the active phase of its 11-year cycle, it can unleash powerful magnetic storms that disable satellites, threaten astronaut safety, and even disrupt communication systems on Earth.

Modern power grids are so interconnected that a big space storm — the type expected to occur about once a century — could cause a cascade of failures that would sweep across the United States, cutting power to 130 million people or more in this country alone, the new report concludes.”

The same type of storm occurred in 1869 shorting out telegraph wires and sparking numerous fires. In today’s electronic age we are looking at a calamity.

Government…You Want to Help Us But…

Unfortunately, I had to file for unemployment insurance for the first time in my life in December. As suggested, I applied on the first day of my official unemployment date…December 1st. It is now Jan 10th and I have still have not received my benefit. I’ve filled out online forms…paper forms…still nothing. I’ve tried to call the agency…well the line has been busy for the past month!!!

Now I’m not the only one experiencing this absolutely frustrating ordeal. The local Denver news channel did a very short piece on a young man who had experienced the exact same thing. He looked absolutely frustrated and dejected. I’m sure he has bills piling up and creditors calling.

I know that we are experiencing the worst employment scenario in over 60 years, but we have seen this coming for over a year now. Why have the agencies not staffed up for the oncoming wave of claims? I know that Obama’s administration is dedicated to helping folks through these very tough times, however, we have a massive bottleneck problem that will cause increased late payments, delinquencies and potential foreclosures.

The unemployment agencies across the US should have been beefed up at least 6 months ago. Get it done now before this calamity becomes worse!